The fort was built in 1612 to make preparations for the Dutch and the Marathas. It was a reference point for the vessels originating from Europe around then. This old Portuguese fort stands on the shoreline south of Candolim, at the shore of the Mandovi River. It was at first entrusted with guard of transportation and the adjacent Bardez sub area. A freshwater spring inside the fortification gave water supply to the boats that used to stop by. This is the manner by which the fort got its name: Aguada, which means Water. Groups of passing boats would regularly visit to renew their new water stores.